Wise, PayPal or Payoneer: What RBI's EEFC Rules Mean for Receiving Euro Payments in India
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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- Last modified:
Short answer
In 2026, euro payments received through Wise, PayPal, Payoneer or a bank wire follow the same RBI and FEMA export rules. An EEFC account can hold foreign exchange earnings such as EUR. The FEMA Export and Import Regulations 2026 require payment within nine months. An EDF, purpose code, FIRC and GST export rules apply.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian residents (freelancers, sole proprietors, firms and companies) who invoice clients in the euro area or elsewhere in EUR for services and choose between Wise, PayPal, Payoneer or a bank wire into an EEFC or rupee account. | FEMA Export and Import Regulations 2026, FEMA 10(R)/2015-RB EEFC rules, FEMA Manner of Receipt and Payment Regulations 2023, IGST Act s.2(6) and s.16, CGST Rule 96A, FETERS purpose codes | Skydo, Razorpay, Wise Business, PayPal, Payoneer | 6 Oct 2026 |
How do Wise, PayPal and Payoneer compare for Indian exporters receiving euro payments?
Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.
| Platform | Best for | Fee | FX markup | Settlement | FIRA | RBI PA-CB status | INR on $5,000 | Source |
|---|---|---|---|---|---|---|---|---|
| Skydo | Indian freelancers and exporters receiving mid to large B2B invoices | $19 up to $2,000, $29 to $10,000, 0.3% above + GST | States zero FX margin at live rate | States under 24 hours; FAQ timelines vary by rail | States instant, free FIRA per payment | RBI authorised PA-CB Inward and Outward; on RBI list | ₹4,70,481 | Skydo pricing (checked 6 Oct 2026) |
| Razorpay | Indian businesses and freelancers on Razorpay invoicing foreign clients | 1% per bank transfer (Rs 1,000 flat below Rs 1,00,000) + GST | States 0% markup on MoneySaver at live rate | States 1 day (T+1 after invoice shared) | FIRS within 24 hours of settlement; no charge listed | RBI authorised PA-CB inward and outward, plus PA-O | ₹4,68,134 | Razorpay pricing (checked 6 Oct 2026) |
| Wise Business | Freelancers and small exporters wanting multi-currency local accounts and eFIRC | Calculator: 1.6% + $2 per payment + 18% GST | Mid-market rate; cost is the 1.6% conversion fee | States under 90 minutes in business hours | eFIRC per transfer, 2 USD + 18% GST | States in-principle PA-CB approval; not found on RBI page | ₹4,64,728 | Wise Business pricing (checked 6 Oct 2026) |
| PayPal | Card and PayPal-wallet payments from overseas PayPal buyers | 4.40% + USD 0.30 per international payment; fixed fee varies | 3.0% above PayPal's base rate on conversion | Not confirmed | Free weekly FIRA; custom Rs 100 + 18% GST each | PA-CB in-principle authorisation granted; final not confirmed | ₹4,35,509 | PayPal pricing (checked 6 Oct 2026) |
| Payoneer | Freelancers and sellers paid via marketplaces or Payoneer clients | Conflicting receiving fee: free, fixed or 1%; 3% INR withdrawal | Conflicting: 3% (fee notice) or 1-4% (pricing page) | Conflicting: auto-withdrawn within 24 or 48 hours | Free digital FIRA downloads; within 72 hours per guide | States in-principle PA-CB; not on RBI list (30 Sep 2026) | ₹4,49,374 to ₹4,68,986 (estimate) | Payoneer pricing (checked 6 Oct 2026) |
- An EEFC account with an AD bank: An Exchange Earners' Foreign Currency account is a foreign currency account a person resident in India may open with an authorised dealer bank in India under FEMA 10(R)/2015-RB, Regulation 4(A). Bank fees and exchange rates are not part of the comparison table on this page, so ask your AD bank for its charges on EUR receipts.
- A SEPA euro bank transfer: SEPA is a scheme for euro payments across 41 European countries, and India is not a SEPA country. Euro paid by SEPA into an account held outside India must still reach India through an authorised bank or authorised person under the Manner of Receipt and Payment Regulations.
Which RBI rule governs euro payments received in India?
Euro export receipts are governed by the FEMA (Manner of Receipt and Payment) Regulations 2023, which let a client outside the Asian Clearing Union pay in Indian rupees or any foreign currency, including EUR. From 1 October 2026 the FEMA Export and Import Regulations 2026 set the EDF, EDPMS and realisation rules for every route. Holding the euros in EUR is governed by the EEFC scheme in Schedule I of FEMA 10(R)/2015-RB.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Currency of receipt | Manner of Receipt and Payment Regulations 2023 | Reg 3(2)(I)(a)(iii) | A client in a country outside the ACU may pay in Indian rupees or in any foreign currency, so a EUR invoice is permitted. | Exporters choosing EUR as the invoice currency |
| EEFC credit limit | FEMA 10(R)/2015-RB, Schedule I | Schedule I, para 1 | A resident may credit 100 percent of eligible foreign exchange earnings to an EEFC account, including professional earnings such as consultancy fees. | Exporters who want to keep EUR instead of converting at once |
| EEFC account terms | Master Direction on Deposits and Accounts | Para 3.1, items 3, 4, 6 and 7 | The account pays no interest, rupee withdrawals cannot be re-credited, and no credit facilities may be granted against the balance. A calendar month's accruals are to be converted into rupees by the last day of the next month, after adjusting for approved uses or forward commitments. | Anyone deciding how long to hold EUR |
| Export declaration (EDF) | FEMA Export and Import Regulations 2026 | Reg 3(2) | Declare the full export value in an EDF within 30 days from the end of the month in which the invoice was raised. | Service exporters billing EUR clients every month |
| Realisation period | FEMA Export and Import Regulations 2026 | Reg 5(1), as amended | Services must be paid within nine months from the invoice date, or twelve months if invoiced or settled in INR. The AD bank may extend the period. | Exporters with slow-paying European clients |
| Payment aggregator settlement | RBI Master Direction on Payment Aggregators | Para 11(d), 11(h) and 11(i) | A cross-border payment aggregator can process up to ₹25 lakh per transaction, must give your AD bank the documents for EDPMS closure, and can settle in a non-INR currency only to exporters it onboarded directly. | Exporters who want aggregator receipts credited in EUR |
Which option leaves the most rupees when a European client pays $500, $2,000 or $5,000?
Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 3 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,800 | ₹0 | ₹324 | ₹45,248 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,800 | ₹0 | ₹324 | ₹1,87,365 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,748 | ₹0 | ₹495 | ₹4,70,481 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,192 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,895 | ₹0 | ₹341 | ₹1,87,253 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,737 | ₹0 | ₹853 | ₹4,68,134 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,276 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,161 | ₹0 | ₹569 | ₹1,85,760 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,623 | ₹0 | ₹1,372 | ₹4,64,728 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,113 | ₹1,358 | ₹380 | ₹43,521 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,366 | ₹5,434 | ₹1,506 | ₹1,74,184 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,872 | ₹13,586 | ₹3,757 | ₹4,35,509 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,365 and PayPal about ₹1,74,184 at today's reference rate, a difference of ₹13,181.
What documents and GST apply to euro export payments?
Each euro payment needs an export invoice, an EDF, a FIRC or similar bank record and, for GST, an LUT or IGST payment. Services count as an export of services when all five conditions are met, including payment in convertible foreign exchange such as EUR. An export of services is a zero-rated supply, and an LUT in FORM GST RFD-11 lets you supply without paying IGST.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| Export invoice in EUR | You, the exporter | When you bill the client; the invoice date starts the realisation period under Reg 5(1) | Every EUR assignment or retainer |
| Export Declaration Form (EDF) | You file it with the specified authority: an AD bank, or STPI for software, or the SEZ Development Commissioner for SEZ units (Reg 2(1)(f)) | Within 30 days from the end of the invoice month (Reg 3(2)) | All service and software exporters |
| FIRC or FIRA | The bank that credits the money; ask your AD bank or provider what record it issues | After each credit. CGST Rule 89(2)(c) asks for BRC or FIRC details when claiming a refund on export of services | GST refund claims and proof of foreign receipt |
| eBRC | DGFT; you self-generate it from your bank's inward remittance message (DGFT eBRC FAQs) | After payment is received | Exporters who need a DGFT record of payment |
| Letter of Undertaking (FORM GST RFD-11) | You file it with the jurisdictional Commissioner (Rule 96A) | Before export | GST-registered exporters supplying without paying IGST |
What changed in the rules this year?
The main change is that the FEMA Export and Import Regulations 2026 came into force on 1 October 2026. A.P. (DIR Series) Circular No. 20 supersedes the Master Direction on Export of Goods and Services and the listed circulars from the same date. The 2026 Regulations do not amend the EEFC scheme in FEMA 10(R)/2015-RB.
- Realisation: A 22 September 2026 amendment set nine months, replacing fifteen, and twelve months for INR, replacing eighteen.
- SOFTEX: The SOFTEX circulars are listed as superseded in the Annex to Circular No. 20, and software exports are now declared in the EDF.
- EDPMS closure: Invoices up to ₹10 lakh can be closed in EDPMS on the exporter's declaration (Reg 4(2)).
- Faster credit: An RBI circular of 9 April 2026 asks banks to inform customers of inward payments on receipt and endeavour to credit payments received in forex market hours within the same business day, effective six months from the circular date.
How did we verify this?
Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.
- Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015, Notification No. FEMA 10(R)/2015-RB, Regulation 4(A); Schedule I, paras 1, 2 and 4 (checked 6 Oct 2026)
- RBI Master Direction - Deposits and Accounts (last updated 2 September 2026), Paragraph 3.1 (EEFC account), items 3, 4, 6 and 7 (checked 6 Oct 2026)
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB (amended up to 22 September 2026), Regulations 1(2), 2(1)(f), 3(2), 4(2), 5(1) and 18(2) (checked 6 Oct 2026)
- Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB (22 September 2026), Amendment to regulation 5 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194: Export and Import of Goods and Services (16 January 2026), Paragraphs 4 and 7; Annex Part A rows 9, 54, 58, 60 and 83 (SOFTEX) (checked 6 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Notification No. FEMA 14(R)/2023-RB, Regulation 3(2)(I)(a)(iii) (checked 6 Oct 2026)
- RBI Master Direction on Regulation of Payment Aggregator (PA), Paragraph 11(d), 11(h) and 11(i) (checked 6 Oct 2026)
- RBI circular: Guidelines to facilitate faster cross-border inward payments (9 April 2026), Paras 3 and 4 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84: Compilation of R-Returns, reporting under FETERS (29 February 2012), Paragraph 3 (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 2 (CBIC tax information portal), Section 2(6) (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 16: Zero rated supply (CBIC tax information portal), Section 16(1) and 16(3) (checked 6 Oct 2026)
- Central Goods and Services Tax Rules, 2017, Rule 96A (CBIC tax information portal), Rule 96A(1) (checked 6 Oct 2026)
- Central Goods and Services Tax Rules, 2017, Rule 89: Application for refund (CBIC tax information portal), Rule 89(2)(c) (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC, Version 1.0 (March 2024), Q1, Q10 and Q20 (checked 6 Oct 2026)
- European Central Bank: Single Euro Payments Area (SEPA), SEPA countries (checked 6 Oct 2026)
- Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
- Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
- Wise India: Fees for receiving money (Business), Conversion fee depends on the currency; eFIRC for every transfer; GST 18% of (conversion fee + eFIRC fee); calculator (checked 6 Oct 2026)
- PayPal India Merchant Fees, Receiving international transactions; Currency Conversions (3.0% converting balance and payments received; 4.00% all other cases); Withdrawals Out of PayPal; Dispute Fees; Other Fees (Last Updated 28 March 2024) (checked 6 Oct 2026)
- Payoneer India home (checked 6 Oct 2026)
Frequently asked questions
Is receiving EUR through Wise, PayPal or Payoneer allowed under RBI FEMA rules in 2026?
Yes, a client outside the ACU may pay in EUR, and Regulation 3(2) requires the money to reach you through an authorised bank or authorised person. The FEMA export rules apply whichever channel is used. See is it legal to receive payments through Wise, Payoneer or PayPal and the comparison table on this page.
Can a freelancer keep euro export earnings in an EEFC account instead of converting them?
Yes. Schedule I of FEMA 10(R)/2015-RB lets a resident credit 100 percent of eligible foreign exchange earnings to an EEFC account. The account pays no interest, and a month's accruals are to be converted by the end of the next month after approved uses under para 3.1. See what is an EEFC account.
Can EUR received through a cross-border payment aggregator be credited to an EEFC account?
Only in some cases. Paragraph 11(i) of the RBI Master Direction on Payment Aggregators allows non-INR settlement only for Indian exporters the aggregator onboarded directly. Ask the provider and your AD bank whether EUR can reach your EEFC account. See RBI PA-CB guidelines for the full rules.
Can a European client send a SEPA transfer straight to an Indian bank account?
No. SEPA covers 41 European countries, and India is not one of them. SEPA is a scheme for euro payments within that region. Euro that then comes to India must arrive through an authorised bank or authorised person and still follows FEMA export rules. See how to receive EUR payments in India.
Do I need a FIRC for EUR export payments received through Wise, PayPal or Payoneer?
A FIRC or similar bank record matters on every route, because CGST Rule 89(2)(c) asks for BRC or FIRC details when claiming a GST refund on export of services. Ask your AD bank or provider which record it issues for each credit. Compare FIRC vs FIRA vs e-BRC.
Is GST charged on EUR fees from European clients if an Indian exporter files an LUT?
No IGST is paid on a qualifying export of services supplied under an LUT in FORM GST RFD-11 under Rule 96A. The supply must meet all five conditions of IGST s.2(6), including payment in convertible foreign exchange. See LUT filing on the GST portal.
How long can a European client take to pay a EUR invoice under the RBI realisation rule in 2026?
Under Regulation 5(1) of the FEMA Export and Import Regulations 2026, services must be paid within nine months from the invoice date, or twelve months if invoiced or settled in INR. Your AD bank can extend the period on request. See export realisation period.
Which RBI purpose code is reported when EUR export proceeds reach an Indian bank?
AD banks report foreign exchange receipts in FETERS using the purpose code list under A.P. (DIR Series) Circular No. 84, and Regulation 18(2) keeps FETERS reporting in place. The code depends on the service you sold. See purpose code for freelancers.